Attachment_1,_PWS.pdf

Performance Work Statement Chile Solar Study

1.0 Introduction

The Overseas Private Investment Corporation (OPIC) exposure at risk in Chile currently involves five solar PV power plants: San Andrés, Amanecer, Luz del Norte, Salvador and Crucero. The current outstanding balance of OPIC’s loans to these projects is over $500 million and several of these loans are in default.

In this context, OPIC requires updated market studies that forecast energy spot prices at the connection nodes of these power plants. This market study will be based on key drivers like demand, fuel prices and development costs of renewable and conventional technologies; however, it is possible that variations on these bases may also be considered as sensitivity studies to be performed in a second stage.

2.0 Objectives

Obtain updated market studies for OPIC’s five Chilean solar projects for the purposes of updating the financial model. The objective is to update each project’s financial model in order to determine the Net Present Value of each plant. This information will inform OPIC’s strategy to maximize recovery of each loan and underpin calculations for OPIC’s reserves based on the expected Loss Given Default.

3.0 Scope

a. The contractor will update the description of the main characteristics of the SEN, with special emphasis on the supply-demand situation of the former SING and SIC areas, which were interconnected in November 2017. The contractor will provide historical data in term of the evolution of demand, fuel sources, energy matrix, spot and contract prices, reserve margin, installed capacity, market shares of main players and main generation and transmission projects underway, among others. The contractor will include a brief assessment of the present and short term supply-demand situation in the SEN.

b. The contractor will make projections of the SEN expansion, spot prices at the connection nodes and expected dispatch and revenues for each one of the 5 Power Plants under analysis.

- The contractor will determine the SEN expansion for a given set a assumptions regarding key drivers like GDP growth and demand projection, evolution of fuel prices, short term system expansion and development costs of technologies like wind and solar. Alternative scenarios may be studied.

- The contractor will calculate spot prices, dispatch of the Power Plants and revenues when selling the energy produced to the spot market for 20 blocks of hours in each month of the study horizon. These blocks represent the daily load curve in working and non-working days as well as the hours where solar PV and wind injections occur along the day. These blocks can be allocated to 8,760 hours of each year. Thirty-one (31) historical hydro-conditions occurred from 1984 until 2014, and will be simulated for each year, combined with 3 wind conditions (high, medium and low).

- The final report will include annual average spot prices (considering all these conditions) together with the hourly profile for working and non-working days. The report will also include average spot prices for dry (average of 10% driest hydro-conditions) and wet (average of 10% wettest hydro-conditions) representative hydro-conditions. Monthly values will be provided in Excel files

- The final report will include energy revenues of each Power Plant as annual value and revenues for dry and wet hydro-conditions. Monthly values will be provided in Excel files.

- Capacity revenues of each Power Plant will be determined on the basis of their adequacy capacity, which will be calculated in accordance with the existing regulations. Ancillary services and transmission charges will also be evaluated.

c. If requested by OPIC, the annual margin (in relation to the spot revenues) of the PPA´s of some of the Power Plants will be calculated. Monthly values will be provided in Excel files.

4.0 Tasks

a. Preliminary Report – base case report will be prepared within one month

b. Alternate Scenario Reports – per request deliverable within 1.5 weeks

c. Final report delivered 1 week after receiving comments on Preliminary Report

d. Annual Updates upon OPIC request.

5.0 Acceptance Criteria

OPIC will authorize payment as follows:

Description Payment Acceptance of reports Upon approval of the invoice for service. Terms as specified in the contract.

6.0 Travel

Travel is not required. OPIC personnel may meet with contractor in Santiago, Chile as part of project site visit.

7.0 Place of Performance

Work will occur in Santiago, Chile.

8.0 Period of Performance

Contract is for one (1) year with three (3) option years. It is anticipated that it will take six weeks for the initial study with updates every 6 months to once a year as needed.

9.0 Contractor Furnished Material

None required.

10.0 Government Furnished Property

None required.

11.0 Performance Requirements Summary

Performance Objective

Standard Performance threshold

Method of surveillance

Responsible for surveillance

Preliminary Report

Timely and error-free.

100% complete at submission of proposal

Routine surveillance and review by Government staff.

COR and contractor PM

Alternate Scenario Reports

Timely and error-free.

100% complete at submission of proposal

Routine surveillance and review by Government staff.

COR and contractor PM

Final Report Timely and error-free.

100% complete at submission of proposal

Routine surveillance and review by Government staff.

COR and contractor PM

Annual updates Timely, error-free, and organized updates.

100% complete at submission of proposal

Routine surveillance and review by Government staff.

COR and contractor PM

12.0 Deliverables

Deliverable Frequency Medium Number of Copies

Recipient

Preliminary Report

Within one month of contract award

Electronic, MS Word or PDF

1 COR

Alternate Scenario Reports

Per request deliverable within 1.5 weeks

Electronic, MS Word or PDF

1 COR

Final Report Once Electronic, MS Word or PDF

1 COR

Annual updates Three additional reports if needed and requested by

OPIC

Electronic, MS Word or PDF

1 COR